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Technology Stocks : Smart Modular - diamond in the rough? -- Ignore unavailable to you. Want to Upgrade?

To: MileHigh who wrote (1511)	5/30/1998 3:02:00 PM
From: Robert H.	Read Replies (2) \| Respond to of 2020

We are at the bottom now. ...Buyback will hold stock from going any lower. I recall playing this stock 6 months ago when it was $40.00 plus. Anything below $15.00 is a steal !! Those who are thinking $10.00 to $12.00 are being totally unrealistic. Only in their dreams. ... .. PRICE: SMOD closed on 29-May-1998 at $13.70 per share. VALUE: SMOD has a Value of $36.10 per share. Value is the foundation of the VectorVest system.It is a measure of what a stock is currently worth. Value is based upon earnings, earnings growth rate, dividend payments, dividend growth rate, and financial performance. Current interest and inflation rates also play an important role in the computation of Value. When interest and/or inflation rates decrease, Value goes up. When interest rates and inflation increase, Value goes down. Sooner or later a stock's Price and Value always converge.

To: MileHigh who wrote (1511)	5/31/1998 4:21:00 PM
From: Mark	Respond to of 2020

MileHigh, I agree that we will likely see a gentle sell off, especially in the presence of general market concerns. I believe we have not yet had a full reaction to all of the SEA woes, and the next 6 months will not be good for the market. I believe that sentiment has now turned against SMOD, and the only thing which will make the stock appreciate short-term is the buy back. The fund managers will wait until there is something more tangible before they re-invest, and most small investors will gradually realise that the recent warnings and sell-off has happened for good reason. Unfortunately at about the time that the last small investor finally "gets it" and sells, the big boys will be thinking about buying again ! (and will have done their due-dilligence). Only then will things change for the better. I have no idea whether SMOD will get to $11 or not; all I know is that SMOD at it's current price is NOT a bargain - I, and many others, can find better medium-term plays. This is not to say that there is anything wrong with the company, or what it seems to be trying to do in the longer term. This is simply a comment on what seems to be happening with sentiment, and what would make a good buy. An interesting parallel, where I am also awaiting the right time to buy, is ADPT. They have had a similar decline profile to SMOD, and all the same "it can't possibly go any lower" supporters. Unfortunately, most of the bulls have been proven wrong on more than one occasion. Mark p.s. I did not find your "original rebuttal" harsh - possibly forthright, but that I appreciate !